The coronavirus is hitting the global economy like a bolt of lightning. The quarantines and “social distancing” necessary to protect public health have triggered widespread shutdowns on the production side of the economy and a collapse of spending on the demand side.

Although national lockdowns have started easing – first in China and now across Australia, Europe and the United States – it remains difficult to project with any confidence how long these disruptions will persist. Central banks around the world have taken aggressive actions to provide liquidity to markets and support their economies. Sizeable fiscal stimulus is also being implemented.